Tuesday

Taking Profits

Post a Comment November 3, 2009 – 4:01 am |   | Permalink |  Print This Post |

GAME PLAN FOR NEXT WEEK

So, our game plan of waiting for a higher entry point didnt eventuate. Markets opened down and went lower. We see markets going lower from here from a macro perspective. The trend followers will probably now short on rallies as oppose to buying on dips since March. The challenge here is when do we take profits? Our portfolio is looking quite FULL below (!), and we look to liquidate most of our stocks this week (hopefully) after a rally (exception of Cooper Energy). Our trading positions remain open but we intend to close out our short USD positions (NZD/USD and AUD/USD). We see a short term rally in the USD as markets head lower. We also have AUD/CAD on our watchlist. We have dipped a few shorts here and there in our personal portfolio, but intend to take a core short position early next week. Sure we are bullish on the Australian Dollar, but commodity rich Canada has quite a similar economy in our view. Only difference is the proximity to China, hence the perceived strength in the AUD. We think this will be a good trading position, and it will probably trade range bound.

We have closed the following positions:

• AUD/USD at 0.905 (entry at 0.637) = realising a profit of $2670.
• FTSE long (entry 3919) $5/point) at 5075 = realising profit of $5760
• FTSE long (entry 4005) $5/point) at 5075 = realising profit of $5330
• Dax short (entry 4700) $5/point) at 5400 = realising loss of $3520
• Dax short (entry 4625) $5/point) at 5400 = realising loss of $3895
• EUR/NZD short (x 1 of 2) (entry 2.303) at 2.046 = realising profit of $2530.

NET PROFIT: $8875.
Opened new positions:

• short AUD/NZD at 1.257
• short AUD/CAD 0.972